European equities traded cautiously on Thursday, with both the STOXX 50 and STOXX 600 oscillating around the flatline as investors waited for further developments in the US–Iran conflict. Tensions remained elevated and signs of de-escalation were limited, which pushed oil prices higher again and kept government bond yields near multi‑year highs.
Markets were also focused on today’s summit between Chinese President Xi Jinping and US President Donald Trump, looking for any concrete outcomes that could ease trade tensions, as well as guidance on other key geopolitical and economic issues.
Technology and banking stocks underperformed. SAP (-1.2%), UBS (-2%), Infineon (-1.6%), Mercedes‑Benz (-1.6%) and Rheinmetall (-2.6%) all traded lower, while H&M fell nearly 3% after its third‑quarter results disappointed investors. By contrast, LVMH (+0.4%), Novartis (+1.1%) and Siemens (+0.6%) advanced.
